GBPJPY has increased its downside momentum since early August and has dropped several big figures from the 146.80 peak to reach below 141.00.
Technical signals on the 4-hour chart remain bearish. The large drop on August 3 brought the market below the Ichimoku cloud, while the Tekan-sen and Kijun-sen lines are negatively aligned. RSI and MACD are both in bearish territory.
Only a sustained move above immediate resistance at 141.00 would shift the focus back to the upside towards 142.00. This was a prior support level and now a strong resistance level which was tested several times and would be a challenge to break. A successful move higher from here would weaken downside pressure and bring into view the level at 143.00.
Only a rise above the cloud at 144.00 would shift the bias to a more bullish one to test the 146.80 peak.
For now, the overall bearish picture gives scope for more downside to target the 140.00 handle ahead of the June 12 low of 138.66.
